Derivatives (Tables)
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6 Months Ended |
Jun. 30, 2023 |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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| Schedule of Derivative Instruments |
The following table details our net volume positions by commodity as of June 30, 2023:
| | | | | | | | | | | | | | | | | | | | | | | | | Production Period | Volumes | | Weighted
Average
Fixed Price | | Fair
Value | | Crude oil swaps (Bbls): | (in thousands) | | | | | | (in thousands) | | WTI | | | | | | | | | 2023 | 6,217 | | | $63.16 | | $ | (44,637) | | | 2024 | 10,201 | | | $65.72 | | (28,329) | | | | | | | | | Brent | | | | | | | | | 2023 | 266 | | | $52.52 | | (5,822) | | | 2024 | 276 | | | $68.65 | | (1,190) | | | | | | | | | Crude oil collars – WTI (Bbls): | | | | | | | | | 2023 | 1,457 | | | $55.63 | - | $74.03 | | (6,732) | | | 2024 | 644 | | | $60.00 | - | $68.02 | | (1,685) | | 2025 (1) | 1,460 | | | $60.00 | - | $85.00 | | (4,352) | | | Natural gas swaps (MMBtu): | | | | | | | | | 2023 | 28,595 | | | $2.91 | | (1,425) | | | 2024 | 9,604 | | | $4.14 | | 5,567 | | | | | | | | | Natural gas collars (MMBtu): | | | | | | | | | | | | | | | | | 2024 | 18,300 | | | $3.38 | - | $4.56 | | 3,585 | | | | | | | | | | | | | | | | | | | | | | | Crude oil basis swaps (Bbls): | | | | | | | | | 2023 | 2,392 | | | $1.26 | | (844) | | | 2024 | 3,568 | | | $1.50 | | (1,086) | | | Natural gas basis swaps (MMBtu): | | | | | | | | | 2023 | 14,922 | | | $(0.29) | | (325) | | | 2024 | 835 | | | $(0.28) | | (101) | | | Calendar Month Average ("CMA") roll swaps (Bbls): | | | | | | | | | 2023 | 2,484 | | | $0.21 | | 281 | | | 2024 | 3,568 | | | $0.32 | | (57) | | | | | | | | | | | | | | | | | | | | | | | | | | | Total | | | | | | | $ | (87,152) | |
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| Schedule of Offsetting Assets |
The following table shows the effects of master netting arrangements on the fair value of our derivative contracts as of June 30, 2023 and December 31, 2022: | | | | | | | | | | | | | | | | | | | Gross Fair
Value | | Effect of
Counterparty
Netting | | Net Carrying
Value | | (in thousands) | | June 30, 2023 | | | | | | | Assets: | | | | | | | Derivative assets – current | $ | 29,930 | | | $ | (10,346) | | | $ | 19,584 | | | Derivative assets – noncurrent | 20,489 | | | (12,749) | | | 7,740 | | | Total assets | $ | 50,419 | | | $ | (23,095) | | | $ | 27,324 | | | Liabilities: | | | | | | | Derivative liabilities – current | $ | (117,732) | | | $ | 10,346 | | | $ | (107,386) | | | Derivative liabilities – noncurrent | (19,839) | | | 12,749 | | | (7,090) | | | Total liabilities | $ | (137,571) | | | $ | 23,095 | | | $ | (114,476) | | | | | | | | | December 31, 2022 | | | | | | | Assets: | | | | | | | Derivative assets – current | $ | 21,880 | | | $ | (7,002) | | | $ | 14,878 | | | Derivative assets – noncurrent | 10,338 | | | (10,338) | | | — | | | Total assets | $ | 32,218 | | | $ | (17,340) | | | $ | 14,878 | | | Liabilities: | | | | | | | Derivative liabilities – current | $ | (319,977) | | | $ | 7,002 | | | $ | (312,975) | | | Derivative liabilities – noncurrent | (74,075) | | | 10,338 | | | (63,737) | | | Total liabilities | $ | (394,052) | | | $ | 17,340 | | | $ | (376,712) | |
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| Schedule of Offsetting Liabilities |
The following table shows the effects of master netting arrangements on the fair value of our derivative contracts as of June 30, 2023 and December 31, 2022: | | | | | | | | | | | | | | | | | | | Gross Fair
Value | | Effect of
Counterparty
Netting | | Net Carrying
Value | | (in thousands) | | June 30, 2023 | | | | | | | Assets: | | | | | | | Derivative assets – current | $ | 29,930 | | | $ | (10,346) | | | $ | 19,584 | | | Derivative assets – noncurrent | 20,489 | | | (12,749) | | | 7,740 | | | Total assets | $ | 50,419 | | | $ | (23,095) | | | $ | 27,324 | | | Liabilities: | | | | | | | Derivative liabilities – current | $ | (117,732) | | | $ | 10,346 | | | $ | (107,386) | | | Derivative liabilities – noncurrent | (19,839) | | | 12,749 | | | (7,090) | | | Total liabilities | $ | (137,571) | | | $ | 23,095 | | | $ | (114,476) | | | | | | | | | December 31, 2022 | | | | | | | Assets: | | | | | | | Derivative assets – current | $ | 21,880 | | | $ | (7,002) | | | $ | 14,878 | | | Derivative assets – noncurrent | 10,338 | | | (10,338) | | | — | | | Total assets | $ | 32,218 | | | $ | (17,340) | | | $ | 14,878 | | | Liabilities: | | | | | | | Derivative liabilities – current | $ | (319,977) | | | $ | 7,002 | | | $ | (312,975) | | | Derivative liabilities – noncurrent | (74,075) | | | 10,338 | | | (63,737) | | | Total liabilities | $ | (394,052) | | | $ | 17,340 | | | $ | (376,712) | |
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| Schedule of Derivative Contracts on Operations |
The amount of gain (loss) recognized in gain (loss) on derivatives in our condensed consolidated statements of operations was as follows for the three and six months ended June 30, 2023 and 2022:
| | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | 2023 | | 2022 | | 2023 | | 2022 | | (in thousands) | | Derivatives not designated as hedging instruments: | | | | | | | | | Realized gain (loss) on oil positions | $ | (26,407) | | | $ | (146,765) | | | $ | (64,512) | | | $ | (246,856) | | | | | | | | | | | Realized gain (loss) on natural gas positions | 6,680 | | | (93,630) | | | (9,856) | | | (143,475) | | | Realized gain (loss) on NGL positions | 11,079 | | | (26,469) | | | 18,563 | | | (52,334) | | | | | | | | | | | Total realized gain (loss) on derivatives | (8,648) | | | (266,864) | | | (55,805) | | | (442,665) | | | Unrealized gain (loss) on commodity hedges | 42,235 | | | 89,655 | | | 239,702 | | | (408,030) | | | | | | | | | | | | | | | | | | | Gain (loss) on derivatives | $ | 33,587 | | | $ | (177,209) | | | $ | 183,897 | | | $ | (850,695) | |
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